Nvidia Chief Executive Jensen Huang said the recent $30bn investment in OpenAI could be the last before a possible IPO by the artificial intelligence start-up by the end of the year. He said it was unlikely that the plan floated in September for a total $100bn investment in OpenAI would materialize.
Speaking at Morgan Stanley's Technology, Media & Telecom Conference, Huang said the prospect of an IPO reduced the need for additional funding from Nvidia. He also said the group's $10bn investment in Anthropic, another major AI player, would likely be its last in that company.
Nvidia's $30bn stake is part of a $110bn fundraising round announced by OpenAI, which also includes a $50bn commitment from Amazon and a $30bn investment from SoftBank. Nvidia had already said in regulatory filings that no definitive agreement on a broader investment partnership with OpenAI was guaranteed.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
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